ADCB 2017 net profit up 3%

ABU DHABI, Abu Dhabi Commercial Bank, ADCB, has announced its financial results for the year ended 31st December 2017, recording a full year net profit of AED4.278 billion, up three percent on its 2016 figures.

Net profit for the fourth quarter was AED1.072 billion, a rise of seven per cent on the same period in 2016. A dividend of AED0.42 per share is being recommended, subject to approval by the Central Bank and shareholders, equivalent to 51 percent of net profit.

Over the year, total net interest income and Islamic financing income of AED6.701 billion was up eight per cent, operating income was AED8.895 billion was up five per cent and operating expenses, at AED2.948 billion, were also up five per cent, resulting in a stable cost to income ratio of 33.1 percent compared to 32.9 percent in 2016, according to a bank statement.

Operating profit before impairment allowances of AED5.948 billion was up four per cent, non-interest income of AED2.194 billion was down four percent whilst net fee and commission income of AED1.507 billion was up two percent.

Total assets grew three percent to AED265 billion and net loans to customers increased by three percent to AED163 billion. Deposits from customers increased five percent to AED163 billion.

Commenting on the results, Eissa Mohamed Al Suwaidi, the ADCB Chairman, said, “I am pleased to report that 2017 was a year of solid growth in a testing environment. ADCB achieved this by remaining true to its strengths; focusing on the UAE, putting the customer first, fostering a healthy culture, focusing on operational excellency and providing world-class standards of corporate governance and risk management practices. We remain focused on the Bank’s proven strategy that has been tested relentlessly since the financial crisis in 2009. Our strategic pillars continue to yield strong results, driving sustainable growth and long-term value for shareholders.”

“During 2017, the Board reviewed and reaffirmed the Bank’s strategy and added a new pillar on digitisation,” he added. “As the global banking industry continues to evolve, we aim to leverage and build digital technologies to better serve our customers and to support growth and enhance operational efficiency. Against this background of change, culture and governance are more critical than ever. Also in 2017, the Board commissioned an independent review of ADCB’s governance and compliance frameworks by leading global consulting firms, which judged its governance to be ‘strong and leading in the local market’ and compliance to be ‘robust and a leading player in the region’. New regulations such as the implementation of Basel III and IFRS 9 continue to strengthen the banking sector, while the removal of subsidies and the introduction of new taxes are fundamentally altering the economy. With its solid foundation, strong capital position and conservative approach to risk management, ADCB is well prepared for these changes. We expect to see a gradual pickup in economic growth in 2018 and beyond and remain well-positioned to benefit from the long term growth prospects of the UAE economy. “

During the year, ADCB received the Mohammed bin Rashid Al Maktoum Innovation Award and the Outstanding Award for Business Innovation in 2017, which, according to Ala’a Eraiqat, Board Member of the Board and Group Chief Executive Officer, “recognise our contributions in business innovation, which has resulted in a superior customer experience.”

“We enter 2018 with confidence,” Eraiqat said. “ADCB has a strong momentum and continues to gain market share. With our focus on enhancing customer journeys and drive for sustainable growth, we continue to deliver greater value for all our stakeholders.”

Source: Emirates News Agency